Xiaomi, known for its smartphones, has made a grand entrance into the electric vehicle (EV) market.

The Chinese tech giant shook the industry by receiving 120,000 orders for its SU7 sedan within just 36 hours of its launch.

This impressive feat has put Xiaomi in direct competition with Tesla, the pioneer in electric vehicles.

The SU7, Xiaomi's first venture into electric cars, sold out quickly after its launch on Thursday.

Lei Jun, the Founder and CEO of Xiaomi, proudly declared at the launch event in Beijing that the SU7 is ready to challenge the dominance of Tesla's Model 3.

The boss, whose net worth is $12.4 billion, confidently stated, "Isn't it time for Tesla Model 3 users to upgrade?"

Tesla Troubles on Wall Street

Meanwhile, Tesla is facing its own challenges. Recent reports indicate a decline in production at Tesla's Shanghai factory, signaling a struggle for the electric car giant.

Competitors like BYD, another Chinese EV manufacturer, have been gaining ground. BYD is now outselling Tesla globally.

As a result, Tesla's market cap has seen a significant drop of 30%. To make matters worse for Tesla, Xiaomi is positioning itself as a serious Tesla alternative in the EV market.

Read also:  Price Cuts and Political Goodwill: Tesla’s Biggest Challenges in 2024

A Major Feat for a Phone Manufacturer

Lei Jun emphasized the difficulty of entering the automotive industry, noting that even tech giant Apple had abandoned its own car project. 

However, Xiaomi persevered, dedicating three years to developing the SU7 sedan.

The SUV 7 boasts impressive specifications. Lei claims the SU7 is superior to Tesla's Model 3 in 90% of features.

Notably, the SU7 offers a minimum driving range of 700 kilometers, surpassing the Model 3's range of 606 miles.

SU7's price is lower than that of Tesla.  Xiaomi's electric sedan comes with a price tag of under $30,000, making it a more affordable option. Tesla's Model S price starts at $40,630.

Xiaomi Tesla-Beating Features

Xiaomi's SU7 presents a formidable challenge to Tesla with its advanced features.

SU7 uses the HyperEngine V8s engine. This is a permanent magnet synchronous electric motor. In contrast, Tesla uses an IPM-SynRM electric motor in the Model S.  The latter is less efficient.

The Xiaomi car derives power from a 101kWh battery and an 800V system.

It also uses twin motors delivering 664bhp, ensuring exceptional acceleration and driving dynamics.

Another engineering highlight of the HyperEngine V8s is the hairpin flat wire winding technology.

This design enhances current capacity. Further, the use of ultra-thin silicon steel sheets in the stator and rotor reduces eddy-current losses.  As a result, the car gets better motor efficiency.

For fun on the road, Xiaomi has diversified the driving experience. They have added various drive modes, including a drift mode for spirited driving.

An included Boost button provides a temporary surge of power, further accentuating the dynamic capabilities of the SU7.

Safety and convenience features are also plentiful in the SU7. There is a Launch Control feature for optimized acceleration.

An 'Autopilot' button on the wheel unlocks advanced driver-assist functionalities.

Xiaomi states that it has tested its smart driving systems over 10 million kilometers.  

Regarding power density, Xiaomi's HyperEngine V8s outperforms Tesla's Model S Plaid.

Xiaomi achieves 10.14 kW/kg compared to Tesla's 5.5 kW/kg. This gives Xiaomi more driving efficiency.

Inside the SU7, there are premium interiors and ample space. Luxurious touches, such as a triple-glazed panoramic sunroof, elevate the cabin ambiance.

Integrated mobile phone docks, a GoPro plug-in, wireless charging points, and Xiaomi tablets for rear passengers cater to modern connectivity needs.

Read also: BYD On Course to Dethrone Tesla in Europe's EV Market, 2024 Reports 

More Ground to Cover

However, Xiaomi acknowledges that it still has ground to cover in terms of software and autonomous driving capabilities compared to Tesla.

Lei Jun estimates that it will take 3-5 years for Xiaomi to catch up with Tesla in these areas.

In the meantime, Xiaomi anticipates initial losses on each vehicle sold.

The carmaker aims to turn profitable within the next five years because they are “investing significantly more than traditional carmakers do for a new model.”

With its ambitious entry into the EV market and the impressive reception of the SU7 sedan, Xiaomi has demonstrated its potential to disrupt the industry and challenge established players like Tesla.